Jindal Saw net hurt by weak sales; to raise funds

New Delhi: Steel pipemaker Jindal Saw Ltd posted a 26.5% dip in net profit for October-December on weak sales, and said it plans to raise long-term funds for capital expenditure.

Profit for October-December was Rs125 crore, while sales fell 22% to Rs1,063 crore.

A Reuters poll of brokerages had forecast net profit of Rs134 crore for the quarter.

The company’s order book executable by March, 2012, exceeded $1 billion and it was likely to win more orders, Jindal Saw said in a statement. About 64% these are export orders.

Jindal Saw, which plans to demerge its investment division into a new subsidiary and list it on the country’s two main stock exchanges, said it will file the scheme with the Allahabad high court in a few days.

Shares in Jindal Saw, valued by market at about Rs5,830 crore, were down 0.43% at Rs210.25 by 3.25 pm in a weak Mumbai market.